a pretty in the city gal on her way to debt freedom & healthy living a day at a time, who fills her time with yoga, music, books, baking and much much more. won't you join her?

Sunday, February 25, 2007

the dreaded "B" word

This week I'm going to work on a budget.

I used to be really good at that kind of stuff. But over the last wee (or not so wee) while, it's just gotten a bit out of hand.

So this week I'm going to work on one, and stick with it.

I know everyone is on a different page here - different living situations, different incomes, outgoings and more... and some ppl just don't like talking about money. But I would love some advice - would love to hear your ballpark figures of how much, reasonable, is a good 'living' budget for one week. How much does the average person spend on food each week? Do you have a certain amount that just goes straight into a bills account each week?

1 Comments:

Here's how I budget. I first work out my basic outgoings (food, public transport, rent, bills) based on a weekly income and then multiply it by the frequency in which I get paid, in my case x2 for fortnightly. I then work out what events I've got coming up that fortnight and deduct a rough amount for presents,dinners, tickets etc. Whatever's left over, I allocate some to my credit card and some to my savings account and then the rest is a bonus to be frittered away or saved at will (depending on that fortnight's circumstances!). My pay always varies, thanks to shifts, so I base my budget on my basic income without shifts.

My first priority in all instances is to get rid of debt. Work out which one of your debts is the most evil and pressing and start dealing with that one first. I always pay at least double the minimum amount on my monthly credit card statements, it's tough at first but so worth it.

Also start a high-interest bearing savings account. You don't have to save heaps at first, but whatever you're spending on little things, start allocating it there instead. Set up a direct debit so it comes out on your pay day and you don't have to think about it. I've done this with ING and they are fantastic! there's no minimum amount to start with and you can put however little or much you want in there.

I hope this is of some help to you! I could ramble on some more if you want ;). Have a great week!